Answer to Question #123044 in Economics for Kelvin Ansong

Question

Suppose TCL incurs huge advertising expenditure resulting from increased number of adverts to inform consumers of the brand name of its product. Should consumers conclude that its products are likely to be of higher quality than other unbranded products. Why or why not ?

Answer 1

Consumers will conclude that its products are likely to be of higher quality than other unbranded products as a result of such advertising, but the quality of this product may be the same as of the unbranded products.